US Tariffs Batter European Banks, Triggering Sharp Losses | JQJO

European banks suffered significant losses following the imposition of US tariffs. The European banking index dropped 9.28%, with major banks like Deutsche Bank and Santander experiencing double-digit share price declines. The losses are attributed to the banks' US exposure and diminished European economic prospects. Economists warn of increased recession risk in the US, further impacting banks through reduced loan growth and interest rates. European banks are also vulnerable to dollar volatility and stifled European growth due to trade tariffs. The EU is preparing countermeasures, but the overall impact on the banking sector is expected to be substantial.